Purchasing Decisions: Limited vs Extended Problem-Solving Approach

question
Briefly discuss a purchase you made within the last two months and explain whether you applied the limited problem-solving approach or extended problem solving approach in the process of making the decision to purchase and consume the product. 
Answer
Purchasing Decisions: Limited vs Extended Problem-Solving Approach
1. Introduction
The article you are about to read is an explorative essay which presents the understanding and the usage of the two sorts of purchasing approaches. Studies and researches have indicated that these two approaches differ from each other mainly in the factors that determine when each approach is utilized. The aim of this article is to develop a vivid understanding on how consumer behavior is influenced in the two different situations. When consumers’ choice of buying behavior is affected by differences in the level of involvement, it results into two sorts of problem-solving strategies: limited problem-solving and extended problem-solving. The study in this article has the main focus on these two strategies and their application in modern life. Different elements and factors of two problem-solving approaches have been discussed here. This essay also sheds light on psychological aspects of consumer decision-making and market behavior in the main focus of selecting these approaches. This report is meant to offer an explanation for those who really want to know about their role in the decision making in the respective markets. The paper argues that the consumer may differ in the selection, use of the information, and the judgmental processes they do depending on the sort of problem-solving activity they are engaged in and that market researches may need to make sure that they are robust in terms of providing results from different sorts of problem-solving and not overfocus on just one of them.
1.1. Definition of Limited Problem-Solving Approach
Recent studies of purchasing behavior have revealed that the consumer’s approach to choosing a product can depend on a variety of factors, such as the type of product to be selected and the importance of that product. One of the approaches that an individual utilizes when making a purchasing decision is the limited problem-solving approach. Limited problem-solving approach involves an internal or non-extensive search for information, for example, settling for the first or the easy option that comes to an individual’s mind. It is an approach that is often used by consumers when they face a recurring problem or when they are looking for a familiar product. In this kind of approach, the individual could simply identify the need for a product and immediately an alternative would spring into his mind, and then the purchasing would happen instantaneously. However, since making a purchasing decision involves conscious mental processes, at least in the case of limited problem-solving, in the event that some information search did take place, the following must apply: the individual must know what to be searched, the search should be based on the current knowledge, and the search for information should serve as guidance for the decision that needs to be made. For example, each time the consumers go to the supermarket to purchase a bottle of water, chances are the consumer will know what to buy and thus there is no need for information search, and hence limited problem-solving takes place. At the point of recognizing the need, the consumer goes ahead with searching the product, and then evaluation of alternatives is done afterwards. There are two phases in which the limited problem-solving takes place; i.e. a problem recognition phase and an evaluation of the chosen product after the purchase has been made. In reality, it is often the case that information search does not take place literally before a product is purchased. When an information search does occur, the particular type of approach being used can be identified.
1.2. Definition of Extended Problem-Solving Approach
An extended problem-solving approach has several important characteristics. First, it involves extensive information search – the consumer searches for information about different products from many sources. Such sources include the consumer’s own memory, personal knowledge, the knowledge of friends and family, advertising, in-store information, and the internet. Secondly, the consumer employing extended problem-solving is more likely to use a comparison of multiple options. Such a comparison of options may be largely in terms of brand comparison such as Mercedes vs Audi or attributes comparison such as those which are known to satisfy the need and those which are just close to satisfaction. For the limited problem-solving approach, consumers rely on shortcuts rather than on significant effort. Third, consumers using an extended problem-solving approach are more likely to engage in a comparison of multiple options, while those using the limited problem-solving approach are more likely to satisfy their need by simply selecting the first product that meets the minimum acceptable requirement, but not necessarily the best that could be obtained. Fourth, consumers using an extended problem-solving approach are more likely to engage in a consideration of external factors. Such external factors might include advice from friends, adverts, the internet, and environmental factors. Finally, the consumer employing the extended problem-solving resources and cognitive efforts more so than from the habitual and variety-seeking resources, but consumers use all three to some degree. It is important to notice that there is no absolute way to determine which method to use (Kardes, Cronley, and Cline, n.d.). Culture, traditions, trends, and as well as the level of involvement which varies are among the factors that influence the decision of which method used with different people and at different occasions.
2. The Purchase Experience
2.1. Description of the Product
2.2. Motivation for the Purchase
3. Limited Problem-Solving Approach
3.1. Minimal Information Search
3.2. Reliance on Prior Knowledge
3.3. Evaluation of Alternatives
4. Extended Problem-Solving Approach
4.1. Extensive Information Search
4.2. Comparison of Multiple Options
4.3. Consideration of External Factors
5. Application of Problem-Solving Approaches
5.1. Determining the Approach Used
5.2. Factors Influencing the Decision-Making Process
6. Conclusion